Demand from the clothing industry is set to drive future market growth for cellulose fibres, according to a new report.

The global market for the fibres was worth US$12.63bn in 2011, according to the report from Transparency Market Research on 'Cellulose Fibres Market for Spun Yarn, Fabrics and Clothing Applications – Global Industry Analysis, Size Share, Growth, Trends and Forecast, 2012-2018.'

The market is expected to reach $24.17bn by 2018, representing CAGR of 9.8% between 2012 and 2018.

Global volume demand for man-made cellulose fibres was 4,763.6 kilo tons in 2011, and is expected to reach 7,814.1 kilo tons by 2018, a CAGR of 7.5%.

“The growing demand for biodegradable, environmentally friendly and skin-friendly fabrics and clothing from the textile industry has been driving the global market,” the report notes.

A shift towards cellulose fibres from petro-chemical fibres is also boosting growth, but inhibiting factors include volatility in wood pulp fibres and regulatory issues due to growing environmental concerns.

The clothing industry was responsible for more than 60% of total consumption in 2011, and it is expected to be the fastest-growing segment for cellulose fibres, with a CAGR of 7.6% from 2012 to 2018.

Meanwhile, the growth of the textile industry, particularly in China and India, is propelling growth for cellulose fibres in the region, making Asia Pacific the leading market, with just over 45% of demand in 2011, and projected to grow at a CAGR of 8.1% by volume to 2018.

The report adds that the European market was worth $4.64bn in 2011 and is expected to grow at a CAGR of 9.4% from 2012 to 2018.